Final Initial Environmental Examination Project Number: 52339-001 December 2020 Proposed Loan Georgia: Modern Skills for Better Jobs Sector Development Program Prepared by the Government of Georgia for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 25 November 2020) Currency unit – lari (GEL) GEL1.00 = €0.26251 or $0.30966 $1.00 = GEL3.0785 or €0.84832 €1.00 = GEL3.80940 or $1.17960 ABBREVIATIONS ADB – Asian Development Bank ACM – asbestos-containing materials CBTE – competency-based training and assessment COVID-19 – coronavirus disease CSOs – civil society organizations EAC – Environmental Assessment Code EIA – environmental impact assessment EHS – environmental, health and safety EMF – electromagnetic field EMP – environmental management plan EMS – environmental management system GDP – gross domestic product GFP – grievance focal person GoG – Government of Georgia GRM – grievance redress mechanism GRCE – grievance redress committee GRCN – grievance redress commission ICNIRP – International Commission on Non-Ionizing Radiation Protection ICT – information and communications technology IEE – initial environmental examination IFC – International Finance Corporation IGA – income-generation activity IMF – International Monetary Fund IUCN – International Union for Conservation of Nature MOEPA – Ministry of Environmental Protection and Agriculture MOESCS – Ministry of Education, Science, Culture and Sport MOESD – Ministry of Economy and Sustainable Development MOF – Ministry of Finance MOIDPLHSA – Ministry of Internally Displaced Persons from the occupied territories, Labor, Health and Social Affairs MRDI – Ministry of Regional Development and Infrastructure NBSAP – National Biodiversity Strategy and Action Plan NCEQE – National Center for Education Quality Enhancement NEETs – not in education, employment or training NGOs – non-governmental organizations NQF – national qualifications framework PIU – project implementation unit PPP – public–private partnership PSC – program steering committee REA – rapid environmental assessment SFF – State Forest Fund SPS – Safeguard Policy Statement SSEMPs – site-specific environmental management plans SSOs – sector skills organizations TA – technical assistance VET – vocational education and training WBL – work-based learning WEIGHTS AND MEASURES dbA – Decibel Hz – Hertz Kg – Kilogram Mg – Milligram Mm – Millimeter NOTE (i) In this report, “$” refers to United States dollars. This Final Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page EXECUTIVE SUMMARY I. INTRODUCTION 1 A. Project Background 1 B. Project Objective 4 C. Environmental Category of the Project 5 D. Methodology of IEE Report 5 E. Project Proponent 6 F. Structure of the Report 7 G. Limitations to IEE study and Further Updating 7 II. POLICY AND LEGAL FRAMEWORK 8 A. General 8 B. Statutory Framework 8 C. Legal and Administrative Framework 8 D. Environmental Regulations and Standards 19 E. ADB Requirements 26 F. IFC Performance Standards 28 G. Equator Principles 29 H. International Conventions and Agreements 29 I. Comparison of ADB and National Requirements 32 III. PROJECT DESCRIPTION 34 A. Project Overview 34 B. Project Need 39 C. Scope of Work 40 D. Implementation Arrangements 48 E. Project Cost 51 F. Project Benefits 54 G. Project Physical Activities 54 IV. ANALYSIS OF ALTERNATIVES 56 A. Overview 56 B. No project Option 56 C. Site and Design Alternatives 56 V. DESCRIPTION OF THE ENVIRONMENT 57 A. General 57 B. Administrative Division of the Regions and Location of Selected Sites 57 C. Physical Environment 58 VI. ANTICIPATED IMPACTS AND MITIGATION MEASURES 96 A. Impact Assessment Process 96 B. Notion of Significance 96 C. Methodology for Impact assessment 96 D. Positive Impacts 96 E. Potential negative impacts at the pre-construction phase 96 F. Potential negative impacts at the construction phase 98 G. Potential negative impacts at the operational phase 104 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 107 A. National Regulations 107 B. International Regulations 108 C. Public Consultations in the Frame of the Project 108 D. Disclosure Requirement and Procedures 114 VIII. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 115 A. Introduction 115 B. Objectives of EMP 115 C. Responsibilities for the EMP Implementation 115 D. Site Specific Environmental Plans 115 E. Health & Safety Management Framework 131 F. Environmental Monitoring 132 G. Reporting 132 H. Environmental Management Costs 132 IX. PROJECT GRIEVANCE REDRESS MECHANISM 134 A. Introduction 134 B. GRM, Grievance Redress Committee and Grievance Focal Persons 134 C. Project Grievance Redressed Process 136 X. CONCLUSIONS AND RECOMMENDATIONS 139 A. Conclusion 139 B. Recommendations 140 ANNEX 1: ATTENDANCE FORMS OF THE PARTICIPANTS 141 ANNEX 2. DESIGNED LAYOUTS OF THE SKILLS HUBS 147 ANNEX 3: ENVIRONMENTAL MONITORING PLAN 151 ANNEX 4: RAPID ENVIRONMENTAL ASSESSMENT (REA) CHECKLIST 154 ANNEX 5: COVID-19 MANAGEMENT PLAN 155 ANNEX 6: PHOTOS FROM THE CONSULTATION MEETINGS 160 ANNEX 7: PHOTOS OF THE SELECTED SITES 163 I. LIST OF FIGURES Figure 1: Locations of VET Secondary Schools Figure 2: Program Organization Structure Figure 3: Geological Map of Georgia Figure 4. Soils Distribution Figure 5: Climate Zones Figure 6: Precipitation Figure 7: River Basins of Georgia Figure 8: Seismic Hazards Assessment by Regions Figure 9: The Map of Protected Areas of Georgia II. LIST OF TABLES Table 1: Summary Program Impact, Effect of the Reform and Reform Areas Table 2: List of Environmental Laws and Regulations Relevant to the Project Table 3: List of Social and Land Ownership Related Laws Relevant to the Project Table 4: Ambient Air Quality Standards Table 5: Surface Water Quality Requirements by Water Use Category Table 6: Drinking Water Quality Criteria Table 7: Indicative Values for Treated Sanitary Sewage Discharges Table 8: Georgian Standards for Noise Levels Table 9: IFC Work Environment Noise limits Table 10: Georgian General Admissible Vibration Values in Residential Houses, Hospitals and Rest Houses, Sanitary Norms 2001 Table 11: Guideline Values for Vibration Velocity to be Used When Evaluating the Effects of Short-term and Long-term Vibration on Structures Table 12: Soil Screening Values Table 13. ICNIRP Exposure Limits for General Public Exposure to Electric and Magnetic Fields Table 14. ICNIRP Exposure Limits for Occupational Exposure to Electric and Magnetic Fields Table 15: International Agreements and Treaties Table 16: Comparison of ADB and GoG Legislation Requirements Table 17: Skills Hubs: Locations, Partners and Sectors Table 18: Proposed Programs for Skills Hubs Table 19: Proposed Project Schools Table 20: Proposed Programs for VET Schools Table 21: Summary of Proposed Programs and Civil Works Table 22: List of Goods and Estimated Values Table 23: Implementation Arrangements Table 24: Project Investment Plan Table 25: Summary Financing Plan Table 26: Cost Breakdown Table 27: List of Protected Areas in Selected Region Table 28: Household Distribution by Main Sources of Drinking Water Table 29: Results of Noise Level Measurement Table 30: IFC Noise Level Guidlines Table 31: Construction Equipment Noise Emission Levels Table 32: Results of Ambient Air Measurement Table 33: Results of Chemical and Microbiological Examinations - Water Sample from Sighnaghi Municipality Tsnori Public School #1 Table 34: Results of Chemical and Microbiological Examinations - Water Sample from Samtredia Public School #1 Table 35: Results of Chemical and Microbiological Examinations - Water Sample from Kareli Public School #1 Table 36: Results of Chemical and Microbiological Examinations - Water Sample from Mtskheta Municipality Village Mukhrani Public School Table 37: Results of Chemical and Microbiological Examinations - Water Sample from Levan Devdariani Gardabani Public School Table 38: Sensitive Receptors along the Project Sites Table 39: List of People Attended Consultation Meetings Table 40: Summary of the Discussion with the Stakeholders Table 41: Environmental Management Plan Table 42: Environmental Management Cost EXECUTIVE SUMMARY I. INTRODUCTION 1. The Government of Georgia (GoG) has declared human capital development as one of the pillars for economic and social development1. Vocational education and training (VET) is the responsibility of the Ministry of Education, Science, Culture and Sport of Georgia (MOESCS). Public VET colleges are eligible for all five types of funding, while private colleges are eligible for voucher funding for short and long-term programs in priority sectors. The VET sector is regulated by the Law of Georgia on Vocational Education 20182 and Law on Education Quality.3 In 2019, there were 90 VET institutes (52 private and 38 public), including 66 vocational colleges, 8 general education schools and 16 higher education institutions delivering long-term VET programs. Private VET institutes represent almost 60.0% of all institutes. Most of these are located in cities where the socio-economic status of potential